Emcure Pharma IPO shares to make stock market debut today; strong listing gains likely

Shares of Emcure Pharmaceuticals are to make their Dalal Street debut today, that is, Wednesday, July 10. Even after a sharp correction in the grey market premium (GMP) in the last few days post bidding, the drugmaker is expected to deliver a decent listing pop to the investors.

 

Last heard, shares of Emcure Pharma were commanding a grey market premium (GMP) of Rs 300 per share, suggesting a listing pop of around 30 per cent for the investors. However, the premium in the unofficial market stood at Rs 390-400 on the last day of the bidding for the issue, before the allotment was announced.

 

Emcure Pharma shares shall at the bourses on Wednesday around 36 per cent over the issue price following a strong response to the IPO said Prathamesh Masdekar, Research Analyst, StoxBox "We have a positive view of the company and advise the participants who have been allocated to the issue to hold the shares from a medium-to long-term perspective," he said.

 

The IPO of Pune-based Emcure Pharma was open for bidding July 03 and July 05. The drug and pharma company offered its shares in the price band of Rs 960-1,008 apiece with a lot size of 14 shares. The company raised a little more than Rs 1,952 crore via its primary offering, which included a fresh share sale of Rs 800 crore and an offer-for-sale (OFS) of up to 79,36,507 shares.

 

The issue was overall subscribed a stellar 67.87 times. The quota for qualified institutional bidders (QIBs) was booked a whopping 195.83 times The quota for non-institutional investors was subscribed 48.32 times. The portions reserved for retail investors and employees saw bidding for 7.21 times and 8.81 times, respectively during the three-day bidding process.

 

Emcure Pharma, a leading player in the pharma market, is set for a stellar stock market debut, suggesting a listing pop of around 35-37 per cent over the issue price, Shivani Nyati, Head of Wealth at Swastika Investmart. "This fervor aligns with the impressive subscription of 67.87 times, showcasing immense investor confidence," she said.

 

Emcure Pharma is expected to have a decent listing at around Rs 1,370-1390 per share, resulting in a listing premium of around 37 per cent, said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360. "Post listing, investors should book profits and we advise investors to stay away from long term investment," he said.

 

Emcure Pharma, incorporated in 1981, is a homegrown pharmaceutical company which develops, manufactures, and globally markets a wide range of pharmaceutical products across several major therapeutic areas. The company has 13 manufacturing facilities across pan India.

 

Axis Capital, Kotak Mahindra Capital, JP Morgan India and Jefferies India were the book running lead managers of the Emcure Pharma IPO, while Link Intime India was the registrar for the issue.

 

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.